CIT Bank raises rate on their Premier High Yield Savings Account to 1.55%

Savings rates have been moving up and CIT Bank’s Premier High Yield Savings Account is one of the nationally-available savings accounts that has been keeping pace with the leaders. On January 3rd, CIT raised the rate on their Premier High Yield Savings from 1.35% (for balances up to $250K; 1.3% above $250K) to 1.55% on all deposit amounts, even above $250K. The minimum deposit needed to open an account is just $100.

Curiously, this rate increase puts CIT’s savings account on par with their no-penalty, 11-month CD, which also currently earns 1.55%. The potential advantage of the no-penalty CD is that the 1.55% rate is guaranteed for 11 months, but with further Fed funds rate increases expected in 2018, this advantage is likely only minimal, at best, and could be a disadvantage if CIT increases the rate on existing savings accounts in step with any Fed rate increases. A clear advantage of the savings account is the flexibility of partial withdrawals since an early withdrawal from the no-penalty CD requires that you withdraw the entire balance.

As of January 3rd, these are the only nationally-available savings accounts with rates that meet or beat CIT’s rate: